Many people are not aware of the nitty-gritty of a Precious Metals Individual Retirement Account or Precious Metals IRA. And for them, it makes sense to go through the frequently asked questions(FAQ) and the corresponding answers for the apparent reason.
Here are the answers to the common FAQs:
What Kinds of Metals Can a Precious Metals IRA Hold?
A Precious Metals IRA can hold four types of metals: gold, silver, platinum, and palladium, with the minimum purity of 0.995%,0 .999%, 0.9995%, and 0.9995% respectively.
What Are the Fees?
Usually, IRA custodians charge an account opening fee, an annual maintenance fee, and a storage fee. Some custodians also charge a transaction fee to purchase your metals.
Why Does the Custodian Charge a Fee?
An IRA custodian does not make money from any of the assets you own in your account. So, they need to charge a fee to not only stay in business but also provide the services. At the same time, the custodian also needs to pass on the costs of storage to the account holder.
What is the Difference Between an IRA Transfer and an IRA Rollover?
An IRA transfer is a passing on of IRA funds from one custodian to another. There are no tax consequences when funds are transferred from custodian to custodian.
A rollover is a movement of funds from like-accounts, such as from one traditional IRA to another. And any number of transfers can be done in a calendar year, without any cap. Transfer of funds between two different accounts, such as from a 401(k) to an IRA, is a perfect example of a rollover.
Investing in precious metals using an SDIRA has many benefits that help you to grow your retirement funds. But you need to acquaint yourself with the necessary know-how before you finally open one. Refer to the infographic in this post to know all about it.